New JerseyS4928220th Legislature (2024-2025)SenateWALLET

Requires payment of prevailing wage for certain data center construction.

Sponsored By: Patrick J. Diegnan Jr. (Democratic), Louis D. Greenwald (Democratic), Paul A. Sarlo (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

Pay protections for data center workers

The law covers New Jersey data center projects starting on or after April 1, 2026, designed for annual electrical use of at least 5 megawatts. Covered work includes construction, rebuilding, demolition, alterations, custom fabrication, and repairs. Workers must receive at least the prevailing wage for their trade, set by the state labor commissioner. Contractors are also fully responsible for wages, benefits, or other amounts their subcontractors fail to pay workers. The law does not set a specific dollar wage.

Labor agreements allowed for larger projects

New Jersey data center projects starting on or after April 1, 2026, can use an optional project labor agreement. This option applies to projects designed for annual electrical use of at least 25 megawatts. Agreements must involve labor organizations whose collective bargaining agreements form or formed the basis for prevailing wage rates. Before construction, the project must be found to advance state and local interests in energy efficiency, quality, safety, timeliness, and skilled workers. The law does not require an agreement.

Insurance and bonds for construction contractors

These rules cover New Jersey data center projects starting on or after April 1, 2026, designed for annual electrical use of at least 5 megawatts. Contractors must show workers’ compensation insurance and general liability coverage of at least $2 million per occurrence. Owned and leased vehicle liability insurance must also cover at least $2 million per occurrence. Contractors cannot provide insurance for subcontractors and must provide a performance and payment bond worth at least 150% of the contract. Required insurance and bond information must be available to the state labor department on request.

Stricter qualifications for data center contractors

These rules cover New Jersey data center projects starting on or after April 1, 2026, designed for annual electrical use of at least 5 megawatts. Contractors must meet public works registration rules, submit certified payroll, and not be barred from state public works. Their workers’ compensation experience modifier rate must be 0.95 or lower. They must provide three years of OSHA injury logs, disclose ten years of federal OSHA citations, and show an OSHA-compliant safety plan; required information must be available to the state labor department on request. Contractors must also keep daily sign-in sheets and submit them weekly to the awarding authority, listing workers’ names, contractors, and arrival and departure times.

Safety protections and new worker requirements

These rules cover New Jersey data center projects starting on or after April 1, 2026, designed for annual electrical use of at least 5 megawatts. All workers need at least OSHA-10 construction safety training; at least one onsite supervisor or foreperson needs OSHA-30-level training. One worker per 15 workers employed by each contractor also needs OSHA-30; heavy-equipment and power-actuated-tool operators must show equipment-specific training. All workers must undergo drug testing, but the law does not state testing frequency or who pays. Temporary labor services can supply only workers verifiably enrolled in an apprenticeship registered with the U.S. Labor Department or a recognized state apprenticeship agency.

Sponsors & Cosponsors

Cosponsors

David Bailey Jr.
Democratic • House
John J. Burzichelli
Democratic • Senate
Andrea Katz
Democratic • House
Heather Simmons
Democratic • House
Troy Singleton
Democratic • Senate
Michael Venezia
Democratic • House
Benjie E. Wimberly
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 112 • No: 32

House vote • 1/12/2026

3RDG FINAL PASSAGE

Yes: 55 • No: 15

Senate vote • 1/12/2026

CONCUR ASMB AMEND

Yes: 28 • No: 10

Senate vote • 12/22/2025

3RDG FINAL PASSAGE

Yes: 29 • No: 7

Actions Timeline

Approved by Governor — P.L.2025, c.335.
1/20/2026Governor
Passed Senate, PBH — (28-10)
1/12/2026Senate
Received in Senate, 2RSC
1/12/2026Senate
Passed Assembly — (55-15-0)
1/12/2026House
Substituted for A6237 (2R)
1/12/2026House
REP/ACA, 2nd Reading in Assembly
1/5/2026House
RCM Assembly Commerce, Economic Development and Agriculture Committee
1/5/2026House
Received in Assembly, Without Reference, 2nd Reading in Assembly
1/2/2026House
Passed Senate — (29-7)
12/22/2025Senate
SA, 2nd Reading in Senate — (Voice) (Ruiz)
12/18/2025Senate
Reported, 2nd Reading in Senate
12/8/2025Senate
Introduced, 1st Reading in Senate, Referred to Senate Budget and Appropriations Committee
12/1/2025Senate

Bill Text

Version PL2025
7/1/2026
HTML PDF
Version AL2025
6/24/2026
HTML PDF
Assembly Commerce, Economic Development and Agriculture (1/5/26 2R)
1/13/2026
HTML PDF
Assembly Commerce, Economic Development and Agriculture Substitute (1/5/26 1R)
1/6/2026
HTML PDF
Senate 12/18/25 1R
1/6/2026
HTML PDF
Senate 12/18/25
12/19/2025
HTML PDF
As Introduced
12/12/2025
HTML PDF
Senate Budget and Appropriations Substitute (12/8/25)
12/9/2025
HTML PDF

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